What Are The History Laws Profitability And

What Are The History, Laws, Profitability And Social Responab Essay, Research Paper

WHAT ARE THE HISTORY, LAWS, PROFITABILITY, AND RESPONSIBILITES

TO THE CONSUMER OF ADVERTISING HARD LIQUOR ON TV IN THE UNITED STATES. INTRODUCTION

Purpose The goal of this report is to inform the reader of the recent events that

prompted hard liquor advertising on TV. In addition, the laws associated with

advertising across this media, as well as recent legislative endeavors to control

such advertising. Furthermore, the report also focuses on the potential profitability

the distilled spirit’s industry will gain from advertising across this media and

the industries social responsibilities to the consumer. Sources and Methods Research

for this report is gathered mainly from information found on the World Wide Web.

Some information was gained through newspaper articles obtained by using the InfoTrac

system in the Ruth Scarborough Library on the Shepherd College Campus. Refer to

the sources section for specific information references. History Research by the

Distilled Spirits Council of the United States (DISCUS) found that 30 to 50 percent

of Americans think that distilled spirits are being advertised on TV. Since Prohibition

the hard liquor industry voluntarily agreed not to advertise their products, first

on radio in 1936, and of TV in 1948. However, the industry is being faced with

declining sales. Their competitors such as the beer and wine industries have grown.

The sales of beer and wine have increased dramatically, leaving the hard liquor

industry behind. The main reason for this occurrence is due to the fact that these

industries have tapped into the resource of advertising on TV. Consequently, this

has prompted the hard liquor industry to reevaluate its current marketing situation.

The first company to take the leap to TV is Seagram. The Seagram company began

advertising 30-second Crown Royal whiskey commercials in Corpus Christi, Texas.

1 2 Definitions The words “distilled spirit” is used throughout this report. Distilled

spirits and hard liquor in this report have the same meaning. Distill means to

let fall, exude, or precipitate in drops or in a wet mist according to Webster’s

Dictionary. Hard liquor is the end result of this process using the appropriate

ingredients. Distilled spirit is any alcoholic beverage not defined as beer or

wine. Laws Constitutional The right to advertise is constitutionally protected

commercial free speech under the First Amendment. This fact is being upheld in

a recent commercial free speech decision by the Supreme Court. The case of 44

Liquormart, Inc. vs. Rhode Island upholds the industry’s commercial free speech

rights by insuring that beverage alcohol is allowed the same protection under

the First Amendment as other legal products and services. In addition, the Courts

also ruled that truthful and non-misleading advertising is an essential part of

the free enterprise system. Withholding this form of advertising deprives the

consumers of knowledge that is needed to make conscious and informed decisions.

Federal Regulations Advertising hard liquor on TV is a constitutionally protected

right, however, the industry must follow strict Federal regulations. An advertisement

of distilled spirits can not contain any false or misleading statement that tends

to create a misleading impression of the product to the consumer. Furthermore,

a statement in an advertisement cannot say anything bad about a competitor’s product.

Provisions are made also for a statement’s design that cannot contain any material

that is obscene or indecent. Federal regulations do not permit claims of distilled

spirits having curative or therapeutic qualities. This practice was very popular

in the 1800’s and early 1900’s. Traveling salespersons would often stage a show

in the middle of small towns claiming a miracle cure for various sicknesses. Most

often, the cure would involve alcohol consumption causing the consumer to become

intoxicated. This advertising was false and misleading. Flags, seals, coats of

arms, crests, and other insignias which can be capable of relating to the American

flag or a branch of the armed forces is strictly prohibited. The advertisement

can not mislead the consumer into thinking that the product is endorsed, made,

used by, or produced for any of the government, organizations, or families these

insignias are associated. 3 The use of deceptive advertising techniques such as

subliminal techniques are also prohibited under federal regulations. Subliminal

techniques refer to any advertising technique that attempts to convey a message

to a person by means of images or sounds that are very brief. These messages usually

cannot be perceived at a normal level of awareness according to federal regulations.

The federal regulations above are only a select few. There are many constraints

on advertising distil

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